Veteran FBI Agent Arrested and Charged With Espionage

Attorney General John Ashcroft, FBI Director Louis J. Freeh and United States
Attorney Helen Fahey announced today that a veteran FBI counterintelligence
Agent was arrested Sunday by the FBI and charged with committing espionage
by providing highly classified national security information to Russia and the
former Soviet Union.

At the time of the arrest at a park in Vienna, Virginia, Robert Philip Hanssen, age
56, was clandestinely placing a package containing highly classified information
at a pre-arranged, or "dead drop," site for pick-up by his Russian handlers.
Hanssen had previously received substantial sums of money from the Russians
for the information he disclosed to them.

"A betrayal of trust by an FBI Agent, who is not only sworn to enforce the law but
specifically to help protect our nation's security, is particularly abhorrent. This
kind of criminal conduct represents the most traitorous action imaginable against
a country governed by the Rule of Law. It also strikes at the heart of everything
the FBI represents -- the commitment of over 28,000 honest and dedicated men
and women in the FBI who work diligently to earn the trust and confidence of the
American people every day."

"These kinds of cases are the most difficult, sensitive and sophisticated
imaginable. I am immensely proud of the men and women of the FBI who
conducted this investigation. Their actions represent counterintelligence at its
very best, reflecting dedication to both principle and mission. It is not an easy
assignment to investigate a colleague, but they did so unhesitatingly, quietly and
securely."

Hanssen was charged in a criminal complaint filed in Federal court in Alexandria,
Virginia, with espionage and conspiracy to commit espionage, violations that
carry a possible punishment of life in prison, and under certain circumstances,
the death penalty. Following the arrest, FBI Agents began searching Hanssen's
residence, automobiles and workspace for additional evidence.

A detailed affidavit, filed in support of the criminal complaint and search
warrants, provides a troubling account of how Hanssen first volunteered to
furnish highly sensitive documents to KGB intelligence officers assigned to the
Soviet embassy in Washington, D.C. The affidavit chronicles the systematic
transfer of highly classified national security and counterintelligence information
by Hanssen in exchange for diamonds and cash worth more than $600,000.
Hanssen's activities also have links to other, earlier espionage and national
security investigations including the Aldrich Ames and Felix Bloch cases,
according to the affidavit.

The affidavit alleges that on over 20 separate occasions, Hanssen clandestinely
left packages for the KGB, and its successor agency, the SVR, at dead drop
sites in the Washington area. He also provided over two dozen computer
diskettes containing additional disclosures of information. Overall, Hanssen gave
the KGB/SVR more than 6,000 pages of valuable documentary material,
according to the affidavit.

The affidavit alleges that Hanssen compromised numerous human sources of
the U.S. Intelligence Community, dozens of classified U.S. Government
documents, including "Top Secret" and "codeword" documents, and technical
operations of extraordinary importance and value. It also alleges that Hanssen
compromised FBI counterintelligence investigative techniques, sources,
methods and operations, and disclosed to the KGB the FBI's secret investigation
of Felix Bloch, a foreign service officer, for espionage.

Freeh said that although no formal damage assessment could be conducted
before the arrest without jeopardizing the investigation, it is believed that the
damage will be exceptionally grave.

During the time of his alleged illegal activities, Hanssen was assigned to New
York and Washington, D.C., where he held key counterintelligence positions. As
a result of his assignments, Hanssen had direct and legitimate access to
voluminous information about sensitive programs and operations. As the
complaint alleges, Hanssen effectively used his training, expertise and
experience as a counterintelligence Agent to avoid detection, to include keeping
his identity and place of employment from his Russian handlers and avoiding all
the customary "tradecraft" and travel usually associated with espionage. The
turning point in this investigation came when the FBI was able to secure original
Russian documentation of an American spy who appeared to the FBI to be
Hanssen, which subsequent investigation confirmed.

Freeh said the investigation that led to the charges is a direct result of the
combined and continuing FBI/CIA effort ongoing for many years to identify
additional foreign penetrations of the U.S. intelligence community. The
investigation of Hanssen was conducted by the FBI with direct assistance from
the CIA, Department of State and the Justice Department, and represents an
aggressive and creative effort which led to this counterintelligence success.
Freeh said, "We appreciate the unhesitating leadership and support of Attorney
General John Ashcroft from the moment he took office."

Freeh also expressed his gratitude to Helen Fahey, United States Attorney for
the Eastern District of Virginia, Assistant United States Attorney Randy Bellows,
and senior Justice Department officials Robert Mueller, Frances Fragos
Townsend, John Dion and Laura Ingersoll for their contributions to the case.

United States Attorney Fahey said, "In the past decade, it has been our
unfortunate duty to prosecute a number of espionage cases -- Ames, Pitts,
Nicholson, Squillacote, Kim, Boone, and others. With each case, we hope it will
be the last. Today, however with the arrest of Robert Hanssen, we begin again
the process of bringing to justice a U.S. Government official charged with the
most egregious violations of the public trust. The full resources of the
Department of Justice will be devoted to ensuring that those persons who would
betray their country and the people of the United States are prosecuted and
severely punished."

"I want to express my appreciation for the outstanding work done by the National
Security Division and the Washington Field Office of the FBI in this investigation.
Their superlative work in this extraordinarily sensitive and important investigation
is testament to their professionalism and dedication. We also express our deep
appreciation for the outstanding assistance provided by the Internal Security
Section of the Criminal Division of the Department of Justice."

Freeh and CIA Director George Tenet kept the Intelligence Committees of
Congress, because of the clear national security and foreign policy implications,
informed about the case.

As a result of Hanssen's actions, Freeh has ordered a comprehensive review of
information and personnel security programs in the FBI. Former FBI Director
and Director of Central Intelligence William H. Webster will lead the review.
Webster, currently in private law practice, brings a "unique experience and
background in government management and counterintelligence," Freeh said.
"Moreover, the respect he enjoys throughout the intelligence community and
elsewhere in government is second to none. Judge Webster will have complete
access and whatever resources that are necessary to complete the task and will
report directly to Attorney General Ashcroft and me. I will share his report with
the National Security Council and then Congress as well," Freeh said.